Gold had been widely expected to make gains after the shocks sent through the global markets by the election of Donald Trump as US President. Investors were expected to flock to buy bullion due to its traditional strength as a safe haven investment in turbulent times.

Indeed, it rose to £1,005.63 per troy ounce in the early hours of Wednesday morning as it became apparent Trump was going to win.

However, Halley said: “What we're seeing today is the continuation of long liquidation going through the market.

“People seem to have unwound their Trump-risk and are now talking more about ‘Trumpflation', with Trump's fiscal policies that he wants to enact with all this infrastructure that would push up inflation and that would push up borrowing rates and yields in the States.”

Analysts are now expecting Mr Trump’s election to lead to the cost of borrowing rising faster than had been anticipated. The Fed’s chair, Stanley Fischer told the markets on Friday that growth prospects are now strong enough to handle a gradual rise in the cost of borrowing.

Generally, when interest rates rise, it signals a steady economy and the gold price falls as investors opt to put their money in more risky ventures instead of the safe haven that the precious metal provides.